NYSE:ZTS
Zoetis Inc (ZTS)
75.35
+0.52 (0.69%)
as of Aug 11, 2026, 8:00:00 pm Market Open.
187 watching
Financials 
Technical Analysis 0
Investor Insights
Aug 12, 2026, 12:00 amThis summary was created by AI, based on 5 opinions in the last 12 months.
Zoetis Inc (ZTS) faces significant challenges despite being a quality company in the animal health sector. The stock has seen a -39% decline this year, primarily due to a recent weak quarter and reduced guidance for its pain management drug for pets, which has received negative attention due to side effects. While the company is expected to launch potential blockbuster pet drugs in the next 6-12 months, pet owners are becoming more conservative with their spending. On a positive note, ZTS's livestock business is experiencing steady growth as global demand for protein increases, and the company remains in an oligopoly where pet spending is generally resilient. Overall, despite the current pressures, analysts note that the valuation is at a historically low level, suggesting potential upside moving forward.
Consensus
Hold
Valuation
Undervalued
Similar
PFE
TOP PICK
Leading player in animal health. Companion animals segment is more attractive than the livestock side. Millennials spend more on pets and pay more attention to their health. Attractive growth rate. Product life cycle is much longer, competition from generics is less. Potential in EMs. Well positioned in an attractive sector. Yield is 0.50%. (Analysts’ price target is $219.52)
Christine PooleOwned
Consumer Products
BUY
Livestock had a tough year in 2020, grows about 5%. But that's coming back. As people get wealthier, they eat more protein. Pet care benefits from branded drug pricing power, good growth over next several years. Not many competitors. Great free cashflow growth, great balance sheet, good product pipeline. Great story for the long term.
Paul Harris, CFAOwned
Consumer Products
PAST TOP PICK
(A Top Pick Jun 26/20, Up 40%) Still buying it here. Pandemic has slowed livestock segment. Pet side has been growing like gangbusters. Easy to bring product to market, not a lot of insurance, not many generics. Will continue to see growth. Free cashflow, great balance sheet, executes well.
Paul Harris, CFAOwned
Consumer Products
TOP PICK
She recently bought this. She likes the animal healthcare industry, half/half in pets and livestock. They hold the leading market share in animal healthcare with over 300 product lines. They've been around for 65 years with a deep sales force. Covid increased pet ownership, including more Millennials who spend more on pets. Livestock is seeing good growth in China and Brazil. China is rebuilding their herd after swine flu, and ZTS develops medicines here. With animal health, generics are less an issue than human health. Well-positioned with a good balance sheet. (Analysts’ price target is $198.82)
Christine PooleOwned
Consumer Products
BUY
It's had a strong run during Covid, though it's perceived as a pandemic stock. Their livestock division has hurt because restaurants are closed, so there's less demand. This division grows only at 5% anyway, but there's higher growth in their pets division. The average pet costs $3,000 annually in food and medical supplies/services. Bringing such products to market is faster than for humans, and ZTS is bringing such products to market in the next little while. The stock is taking a breather here, but he continues to buy it and it will grow nicely in coming years.
Paul Harris, CFAOwned
Consumer Products
TOP PICK
Animal care plus livestock. Livestock is not growing as quickly as last year, but will as protein consumption grows in developing countries. Pet business really strong this year. Drugs come to market sooner, and not many generics. Great demographic and growth story. Yield is 0.67%. (Analysts’ price target is $186.31)
Paul Harris, CFAOwned
Consumer Products
TOP PICK
In 2001, people spent $6.2 billion on pets and $15.5 billion in 2018, so this is a good growth industry. Zoetis has a livestock business, growing 4--5%; though restaurant closures have slowed growth lately, as people age, they eat more protein. Also the pet business is growing strongly. The average pet owner spends $3,000 on their pet. Another tailwind is that animal drugs have few generics. (Analysts’ price target is $181.18)
Paul Harris, CFAOwned
Consumer Products
PAST TOP PICK
(A Top Pick Dec 19/19, Up 26%) Livestock and pets. Consistent grower at 5%. As people get wealthier, they tend to buy more protein, so livestock goes up. R&D benefits humans, has easier approval, and has pricing power. Pets are a high growth industry. Great products in pipeline. Will continue to do well.
Paul Harris, CFAOwned
Consumer Products
BUY
A lot more people have either bought or adopted pets. The cost of keeping an animal has gotten more expensive. You should buy on a pull back. It is a great demographic story.
Paul Harris, CFAOwned
Consumer Products
PAST TOP PICK
(A Top Pick Sep 26/19, Up 26%) Pharmaceuticals for pets and livestock. Beat revenue by 11% on pets. Livestock side was down, but rose at 5%. Great company and demographic growth. If you see a pullback, buy.
Paul Harris, CFAOwned
Consumer Products
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
